Bitcoin's Trading Range Persists as Market Awaits Powell's Speech at Jackson Hole
Summary:
Bitcoin (BTC) remains range-bound as traders await Jerome Powell's speech at the Jackson Hole event. Market sentiment is conflicted after BTC's recent decline. The Bitcoin market has calmed down ahead of the Federal Reserve gathering. Powell's speech on interest rates may influence Bitcoin's next move. The U.S. dollar index has also shown little movement, adding to Bitcoin's uncertainty. August is traditionally a less volatile month for Bitcoin. Oversold conditions may lead to a potential price bounce, while bears eye a downside target. This article does not provide investment advice.
Bitcoin (BTC) has been trading within a narrow range for several days, and this trend continues on August 23. The spotlight is on Jerome Powell's speech at the Jackson Hole event. BTC price has been confined between $25,800 and $26,300 since August 19, reflecting conflicting sentiments among traders following its 12.5% decrease this month. Leading up to the Federal Reserve's annual gathering, the Bitcoin market has become relatively calm. Fed chair Jerome Powell is scheduled to speak on August 25, where he is expected to share his thoughts on interest rates. The minutes from the July Fed meeting revealed concerns about sustained inflation, which could potentially result in a rate hike in September. Despite Powell's previous statement about studying economic data at each meeting, the CME FedWatch Tool predicts an 84.5% chance that rates will remain unchanged. As a result, Bitcoin has been cautious in recent days, possibly in anticipation of Powell's speech. Similarly, the U.S. dollar index (DXY) has shown little movement lately. On August 22, the index increased by 0.2% and has stayed within the 103 to 103.68 range as investors await interest rate indications from Powell. Bitcoin has displayed a strong inverse correlation with the dollar since mid-July, meaning that a short-term stagnation in the dollar has left Bitcoin uncertain about its next move. August is historically the least volatile month for Bitcoin as many people are on vacation until after Labor Day in September. Interestingly, Bitcoin's decline this month has led to its daily relative strength index (RSI) reaching its most oversold state since June 2022. An oversold RSI often implies a price rebound, potentially propelling Bitcoin towards the $26,500 to $27,500 range by September. On the other hand, if selling pressure persists, bears may set their sights on the $24,750 to $25,350 range as the next downside target by September. It is important to note that this article does not provide investment advice or recommendations, and readers should conduct their own research before making any decisions.
Published At
8/23/2023 1:56:56 PM
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